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1 . All of the following are reasons why a canceled debt may not be included in the gross income calculations of a taxpayer, EXCEPT:

1. All of the following are reasons why a canceled debt may not be included in the gross income calculations of a taxpayer, EXCEPT:
A. the taxpayer is individually liable for the debt (i.e., nonrecoruse debt)
B. the debt is canceled in a bankruptcy case
C. the debt payment would otherwise be deductible
D. the taxpayer is insolvent

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